From Randy Seaver's Geneamusings Blog:
"The deal is:
* Annual 12-month subscription for the "World Explorer" membership is $19.95 per month, or $239.40 per year. That is a 20% price reduction over the renewal price of $24.95 per month ($299.40 per year).
* Annual 12-month subscription for the "U.S. Discovery" membership is $9.95 per month, or $119.40 per year). That is a 23% price reduction over the renewal price of $12.95 per month ($155.40 per year).
For someone just starting out with Ancestry.com, this is a pretty good deal (33 cents per day for the US membership, 66 cents per day for the World membership).
In addition, a user can sign up for 14 days free membership. However, if you do this, you need to either subscribe or cancel your trial membership before the 14 days are over in order to avoid paying the monthly subscription rate.
Why is Ancestry.com offering discounted one year membership rates? I think that it's because of their "churn rate," which has been around 4% per month for the past two years. That means that 4% of their subscribers drop their subscription EVERY MONTH! That's almost 50% per year. If they can keep more of their new subscribers by offering a discounted yearly rate, that is good for Ancestry.com.
It would be interesting to know the churn rate for the Ancestry.com month-to-month subscribers, the quarterly subscribers, the half-year subscribers, and the yearly subscribers. Is the churn rate that much lower for the yearly subscribers that there is no need for a discounted annual rate for existing subscribers?"